Wednesday, February 13, 2013

EPA 2013 Renewable Fuel Standards Update

The U.S. Environmental Protection Agency (EPA) announced on January 31 that it is proposing the 2013 percentage standards for four fuel categories that are part of the agency's Renewable Fuel Standard program (RFS2). For 2013, the program is proposing a 1.35 billion gallon increase of renewable fuels over the amount mandated for 2012. The proposal will be open for a 45-day public comment period, and EPA will consider feedback from a range of stakeholders before the proposal is finalized. The EPA continues to support the use of renewable fuels within the transportation sector through the RFS2 program, which encourages innovation, strengthens American energy security, and decreases greenhouse gas pollution.

The Energy Independence and Security Act of 2007 established the RFS2 program and the annual renewable fuel volume targets, which are expected to steadily increase to an overall level of 36 billion gallons in 2022. To achieve these volumes, EPA calculates a percentage-based standard for the following year. Based on the standard, each refiner and importer determines the minimum volume of renewable fuel that it must use in its transportation fuel.

The proposed 2013 overall volumes and standards are as follows: for biomass-based diesel, 1.28 billion gallons or 1.12%; for advanced biofuels, 2.75 billion gallons or 1.6%; and for cellulosic biofuels, 14 million gallons or 0.008%. The total renewable fuels target is 16.55 billion gallons or 9.63% of transportation fuels. See the EPA press release and the Renewable Fuels: Regulations and Standards webpage.